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Data shows that sanctions cut Russian LPG rail exports in January and February by 24% year/year.

Calculations based on data from the industry showed that Russia's rail-exports of liquefied petrol gas (LPG), which were a result of European sanctions, fell by 24% in January and February compared to last year, reaching 451,000 metric tonnes.

The European Union imposed sanctions on Russian LPG due to the conflict in Ukraine on December 20, 2018. Poland, one Russia's biggest LPG importers, proposed the restrictions last year.

LPG (or propane and butane) is used primarily as a fuel for cars and heating, and also to make other petrochemicals. The majority of Russia's LPG exports are shipped by rail, with the remainder transported by truck.

Data shows that supplies to Poland fell 88%, to 24,000 tonnes, during the period. Exports to Latvia, however, slowed down to 500 tons, compared to 53,500 tons at the same time last year.

In the first two month of this year, Lithuania has not imported any Russian LPG.

Russia has been able to divert large volumes of fuel from Europe and other countries to Afghanistan where production of LPG was constrained by a lack in facilities.

According to industry data, Sibur, Russia's biggest producer and exporter LPG, increased its supplies to the Baltic Sea Port of Ust-Luga in February by 42% from January, to 82,000 tonnes.

About 90% of LPG supplied from Ust-Luga is delivered to Turkey.

The traders said that Sibur’s exports are facilitated by the new MGC tankers (medium-gas carrier), a shortage of which affected supplies last year. Hugh Lawson, Reporting and Editing

(source: Reuters)